Around the Markets
Midwest organic corn prices have experienced light activity, of late, as traders await the new crop, which is poised to be brought in from the field early this year. Prices sit near $8.00 per bushel. Generally, the organic corn crop harvest comes after conventional crop harvest, as farmers plant organic varieties later in the growing season, in an effort to avoid pollination with conventional plant varieties. Good weather is allowing the new crop marketing process to start early, with buyers looking to purchase corn in the second or third week of September. Prices appear to be capped now, as imports continue to trade in the Port of Baltimore near $9.00 per bushel. Yields are expected to be huge, too, especially in Illinois; areas of Michigan could see lower yields, however, after experiencing harsh weather. If the crop continues to develop favorably, buyers will luck out, given the lack of imports from South America. Midwest organic soybeans have not seen the uptick they normally experience at this time of year. Beans should also see large yields, and are trading near $17.50 per bushel on the farm, and close to $19.00 for processors. Bean oil is seeing lots of activity, as crushers continue to try to meet the demand for meal. Prices for organic bean oil are bid near $0.40 per pound, and offered near $0.70.
In the News
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UK Organic Sales Remain Strong
UK organic product sales have continued to grow apace—according to new data from Nielsen, and analysis from the UK’s governing organic certification agency, The Soil Association. In the 52 weeks prior to June 2016, supermarket organic product sales grew at 5.2%. In comparison, at the end of 2015, the marketplace experienced a 3.2% annual growth rate over the prior 12 months to December. The Soil Association commented that it feels growth in organics should persist, even in the face of trade concerns surrounding the British exit from the E.U. The group also noted that organic meat sales are largely leading the charge, with a 4.1% increase in sales since February 2016, versus a corresponding 8.1% drop in non-organic meat prices. That diversion in prices, the organization stated, is likely due to a report from the British Journal of Nutrition—released in February—which indicated that organic meats contain up to 50% more omega-3 fatty acids than their non-organic counterparts. (Soil Association; Nielsen).
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Sugar Forfeitures Unlikely
At an industry event last week, a USDA representative stated that there is a low probability of sugar forfeitures in the coming months. Industry participants have been concerned about forfeitures against the U.S. government’s loan program, as beet sugar prices drop near thresholds that would trigger such an event.
Earlier this year, buyers were seen front-running the GMO-labeling debate, by purchasing larger quantities of cane sugar (non-GE) and avoiding the predominantly GE beet sugar market. The USDA enacted countermeasures to combat the hike in cane demand, including raising import quotas. With the new GMO-labeling bill elucidating requirements for food processors, however, the price spread has been narrowing. (Food Business News; USDA).
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GMO Wheat Quarantine All-Clear
The USDA quarantined a Washington state farm last week, after GE wheat was discovered growing in a field in June. No GE product was detected in the harvested crop, however; as such, the operation’s wheat will now be allowed to enter the marketplace. (Reuters).
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